Treasuries Advance Before Fed Meets on Bets Growth Will Suffer

Treasuries rose for a second week as investors speculated that efforts to cut the Federal budget deficit may damp economic growth and awaited a policy statement next week from the Federal Reserve.

Ten-year note yields fell to the lowest level in a month even as Standard & Poor’s put the U.S. government on notice that it risks losing its AAA credit rating. Gains were tempered by advances in stocks. The U.S. will sell $99 billion in notes in the coming week, and the Federal Open Market Committee opens its two-day meeting on April 26.